CPF becoming a hot potato issue

With the latest increases in the Minimum Sum to be retained in the CPF and Medisave Accounts, the CPF savings scheme is now a hot potato issue among the account holders. Many felt cheated while some felt glad that the govt is raising the minimum sum to provide for their retirement needs. Below are two comments from bloggers in the TRE on this topic.

1. Sperm:
Likely PAP squandered away all our CPF money , we become a country of bankrupts ?

2. Im a layman.
I dont concur because I ask myself a few questions first.
Did the CPF ever default since its inception in 1955?
The ruling party has a non nonsense reputation when it comes to credibility & integrity in finance.
It has fed this donkey (cpf) with a higher than bank savings rate since inception so that the people will have a bigger nest egg.
Which member upon reaching 55 and minusing the prescribed asset hasnt been paid back the balance?

Commentator Sperm belongs to one camp that is being troubled by this obsession and funny logic to keep raising the minimum sum. They are suspicious and worried that the CPF has not enough money to pay them and has to resort to locking away their savings by all kinds of schemes and means for as long as it can. How valid are their concerns and suspicions? At best it is only a gut feel as nobody really knows and the govt is not coming up with official statistics except statements to assure the people that their money is safe.

In the case of commentator ‘I m a layman’, he is a happy man. He is very confident that all the money is there and there is nothing to worry about. He even commented that until now, the govt has not defaulted in any payments to the account holders when they reached the retirement age of 55. And he is right. Those who had reached the age of 55 earlier had happily received their CPF savings in cash. Those that reached 55 in the last few years also had received some of their money in cash but with some of their savings lock up in Minimum Sums Schemes and Medisave. But they are not complaining much as they still got to receive a fairly substantial sum at 55.

Now this is a thing of the past. The new 55 can only withdrawal the amount after setting aside the minimum sums in the RA and MA, nearly $200k or $5k as many did not have enough to cover the minimum sums. The govt is not renegating on the payout at 55. The govt sure pay out if one has the money to be paid out. Just make sure your balances are more than the two minimum sums and you will receive your money.

Now who is accusing the govt for not being able to meet their obligations and not paying out the money when it is due? Not true right. So commentator ‘I m a layman’ is right. Do not underestimate the intelligence of a layman. He is clever like hell. You cannot cheat a layman unless he volunteers to be cheated, willingly, happily and gratefully.

Kopi Level - Yellow


Anonymous said...

We have no children. We don't need CPF as we are financially sound. My point is that we will not outlive the minimum sum payments. So the balance goes to whom? We are not interested in giving anyone our hard earned money. Any thoughts?

Anonymous said...

But will majority (aka 60%) Sinkie voters become angry and not vote for PAP because of this?

If so, then why PAP still kar kar (dare to) raise the CPF minimum sum and not afraid of being voted out, u tell me lah?

Anonymous said...

Aiya, PAP already kar kar did many things that made Sinkies very angry, before and since 2011. And increasing CPF min sum is only just one of them, tio bo?

But why 60% SInkies still vote PAP in 2011? Why?

And why not 2015/2016, u tell me lah?

Anonymous said...

Because the best and strongest opposition WP is not ready to be govt and also didn't slap PAP hard enough after being given a chance in Parliament.

That's why.

Chua Chin Leng aka redbean said...

Taking the people's life savings is a very tough decision for this govt. They know that it is unpopular but good for the people. The Sinkies will all have a lot of money left behind, use cannot finish.

To Anon 8:38 who has no children to bequeath the leftover largese, just find someone deserving and will it to him/her. If still cannot find anyone can will it to redbean : )

This govt is so proud that it knows how to make this kind of tough decisions.

Anonymous said...

This is real life from someone I know: He turned 55 last year and was allowed to withdraw $5k only, the rest trf. to his retirement a/cs. He still has a year of mortgage instal. to pay. This month he was diagnosed with cancer and is now hospitalised. He cannot work now as he awaits for his chemo. treatment and he don't think he will be able to go back to his welding job. He has 3 schooling children. The eldest this yr 3rd yr in U, used to pay tuition fee from his CPF, now cannot. 2nd in NS, third in polytechnic. The retirement a/cs mthly withdrawn is 65 years old. Which gov't dept. can he approach for help?

Anonymous said...

Try Ah Long.

Anonymous said...

Payment schedule works like a MLM scheme, and those who hit 55 later will help in the payouts to those who hit 55 earlier.

If one follows this reasoning, it is inevitable that the minimum sum has to be adjusted upward each year in order to help meet the payment onligations. And it has also become unavoilable to take in more n more migrants to form the pool just to cover the black holes....

By doing so, will then our leaders say Spore belong to everyone - locals and migrants.

Isn't it a shame?

Anonymous said...

9.39am I think your friend is toast. But I think there is a scheme if you can proof that u will be dying soon, they will release your money lor

jjgg said...

To anon 8.38. If u don't nominate then u just helping to make the fat cats fatter..hmmmm...wonder what the unclaimed balances in cpf is....how many zeros? Btw..is there even 1 Singaporean citizen who fully received his cpf in his lifetime?

Anonymous said...

Anon 9:39 am, just too bad lah, your friend is a minority, definitely less than 40%.

Any govt policy are bound to have some bad effects on some people.

What is important to govt is that only a minority is affected.

That's how govt ensure that they can win enough votes to be voted in as govt.

And it's the same everywhere lah, not just Sinkieland.

Anonymous said...

This govt is so proud that it knows how to make this kind of tough decisions.

Not that lah.

Govt is proud that despite this kind of tough decisions, majority (aka 60%) Sinkies think it is still best to vote for them.

Now suppose u think u are a lousy worker. Yet your boss could not find a better worker to replace u, so u still remain in your job.

Don't u feel proud?

Ⓜatilah $ingapura⚠️ said...

Hot potato issue? More like a HOT AIR issue.

What the govt is doing is perfectly lawful. The increase in the minimum sum is in line with the amount of inflation and the subsequent decline of purchasing power of the famous Singapore Dollar. The minimum amount today is measured against the purchasing power of the SGD in 2003.

If you go to MAS website, one of their "objectives" is to promote "non-inflationary growth" in Singapore. However, the hard cold fact is that MAS's claim is complete and utter bullshit. We all know that there's inflation -- money supplies have grown, and credit has also grown. Kopi in 2003 was less than a dollar. Now it over $1 at most kopitiams. Gold in 2003 was around USD400. Now it is nearly $1300.

In Singapore, nothing is free. The govt has been clear that any form of "social welfare" must be paid for by every citizen. So "public housing" -- you pay market price. Healthcare -- you pay Medisave and Medishield. Roads -- you pay ERP. Retirement -- you pay CPF.

Drawing down on the massive sovereign reserves to spend on "welfare" is completely not an option as far as the financially prudent Singapore government is concerned.

And before you shoot another salvo at your oppressors: other cuntries -- even the mighty USA are looking seriously at how a tiny cuntry -- actually city-hotel-resort state -- is now amongst the wealthiest and best educated nations of all human history.

Singapore runs on its own brand of meritocratic materialism. Although it is not everyone's cup of tea (or kopi in redbean's case), for those of the LIBERTARIAN persuasion, is it one rocking, awesome place -- where if you live or die, that is entirely your business.

Get your capitalism on!

Anonymous said...

Ya keep rocking and it will break into pieces. Don't be so gullible to think that everything is so perfect. Go beneath the veneer to find out the ugly truth.

Anonymous said...

Inflation has deflated our nest egg, creative account has squirrel away what was ours into the treasury. If the opposition start to ask questions like uncle Leong, more opposition will be in parliament in the next GE.

Anonymous said...

Uncle Leong and RB know how to ask questions but are not MPs.

Opposition MPs in Parliament but don't know how to ask questions.

Like that how?

Anonymous said...

Like that how?
Anon 1:59 pm

Like that good lah, for PAP.

Anonymous said...

The problem and fear is not about not receiving part of our CPF savings at 55, but will those who start working now be receiving any savings left over, after their CPF monies contributed throughout their working lives, have been siphoned off and kept for good in MSS and Medisave.

With the annual increase going up and up, at $7K for the MSS and $3K for medisave for now, how much is left over for eventual withdrawal, considering that a HDB flat now cost a bomb.

No default so far does not mean it will never default. Already we have been warned that should there be a default in one of the schemes, CPF members may not get back their money. And we are not sure how much higher the annual transfers will be in years down the road. The thought is troubling.

The way I see it, the CPF scheme is being turned into a ludicrous scheme that is out to keep member's money, as much as possible, for as long as possible.

In any case the argument that CPF gives higher interest rate than banks 'since inception' is not correct and totally flawed, because at one time (late 1990s)fixed deposit rates were higher than CPF interest rate. That was why the CPF board allowed members to transfer CPF money into bank's fixed deposit accounts because they were able to earn higher interest. That has since been stopped and the reason was that bank's fixed deposit rates fell below CPF interest rates.

Anonymous said...

"The ruling party has a non nonsense reputation when it comes to credibility & integrity in finance."

Never heard of Aimgate? Layman or caveman?

Anonymous said...

Opposition MPs in Parliament don't know how to ask questions also can lah! Rather than PAP MPs in Parliament talking cock and sing song one.

So, as long as opposition MPs know how to slap and tickle, that is good enough for Hougang, Aljunied GRC and Punggol East voters.

b said...

So long as majority of the voters think it is a good idea, there is nothing the minority can do except to migrate. This is what democracy is about.

b said...

All rulers in this world want their people to work for free for life for them. They are not so stupid to share their wealth and luxuries with their people. Thats why it is better to vote a monkey or donkey because they are less intelligent to screw us. Vote a smart ass and the people will get oppression.

Eddie Leong said...

Spore is cradle to grave management.

So CPF fits into the Master Plan. During the education years they make sure you stop thinking but cram your head with facts...much of that useless anyway.

Spore will never get a Nobel Prize winner because people are not encouraged to think and to challenge.

So CPF is tightly controlled. Even after you die your next-of-kin cannot use it to pay for your funeral.

And it is passed on to the next generation. Not sure what happens if there is no next generation for you.

Sad, sad.

Anonymous said...

The govt thinks CPF is govt pension fund and has the right to control and do as it pleases.

Anonymous said...

The simple question is in which country can one make such a huge compulsory saving his entire working life and still be unable to retire. Now that is what you call a first world government and that's why they deserve their million dollar salaries with pension and not CPF

Anonymous said...

I'm an Ah Long.
Thank you PAP.
Please keep increasing the Minimum Sum.
Every time you increase, my business gets better.
I will definitely vote PAP.

Ⓜatilah $ingapura⚠️ said...


>> The govt thinks CPF is govt pension fund and has the right to control and do as it pleases.

It is.
They can.

Surely you've seen the evidence for yourself?

Anonymous said...

Why does it take four and a half decades for Sinkies to realise the deadly effect of a party with the 'lightning' logo to register its evil intent?

Now we know, but what can we do? When struck by lightning, you either die or become lifeless, roasted meat.